7963 Mitchell Farm Ln

Montgomery, OH 45242

$479,900D

3 bd · 1.5 ba · 2,074 sqft · Built 1958 · SingleFamily · Active · 46 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,067/mo
• Mortgage (P&I): −$2,517
• Tax + insurance: −$719
• HOA: −$0
• Vac / Maint / Mgmt: −$644
• Net cashflow: $-812/mo
• Annual: $-9,750/yr
• Cap rate: 4.26%
• Cash-on-cash: -7.26%
• DSCR: 0.68
• 1% rule: 0.64%
• Cash to close: $134,372

Investor read

• This is a 3-bed/1.5-bath single-family listed at $480k.
• At list price, monthly cash flow is $-812 ($-10k/yr) — negative.
• To cash-flow at today's rent, offer at most $336k (29.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $307k (36.1% below list).
• It's been on market 46 days — a 3% lower offer ($466k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $307k (36.1% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $14k of value loss. Plan a longer hold.
• Location reads 82/100 on livability (#86 in OH, #1,249 nationally) — a professional / high-income tenant draw. Strengths: crime A+, employment A+, housing A+; Watch: cost of living D, amenities F.
• Sycamore Community City (suburban): math 83% / reading 84% proficiency, ranked #30 of 656 in OH (top 5%) — strong family-tenant draw, lease renewals of 3-5y typical; only 13% free/reduced lunch — higher-income household profile.
• Zoned schools: Montgomery Elementary School (math 98% / reading 92%, grade A+, #6 of 1,584 statewide, top 1%, 517 students, 5% FRL); Edwin H Greene Intermediate Middle School (math 80% / reading 86%, grade A+, #29 of 654 statewide, top 5%, 876 students, 12% FRL); Sycamore High School (math 71% / reading 85%, grade A-, #50 of 781 statewide, top 6%, 1,639 students, 15% FRL) — zoned schools at 11% FRL track the district average.
• Watch-outs: built in 1958 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+5.5%/yr); 55 active listings in the ZIP; 6 comparable units currently listed for rent nearby; rentals at typical pace (median 20d on market — plan ~3-4 weeks tenant-placement turnaround); high-income renter base; 801 units permitted in Hamilton County in 2024 (190 in 5+ unit buildings).
• 2 sale attempts with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Cap rate 4.3% vs local median 1.9% in Montgomery — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• It's been on market 46 days. Have you received any prior offers? Is the seller open to a 36% concession, seller financing, or rate buy-down credit?
• Built in 1958 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.
• What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.